The list of American cities suffering a mass shooting tragically got longer over the weekend, when Omar Mateen attacked the Pulse nightclub just south of downtown Orlando. The 29-year-old security guard killed at least 49 individuals, and wounded another 53, before being shot dead by police officers.

President Obama labeled the attack an “act of terror and act of hate.” Mateen reportedly called 911 in the midst of the shootout and pledged his support to ISIS, and the terrorist group later tried to claim responsibility for the action.

Whether that turns out to be more bluster than reality doesn’t matter. Mateen’s attack was the worst mass shooting on U.S. soil, and the worst domestic terrorism attack since 9/11.

First and foremost, my thoughts and prayers go out to the families of the victims of this terrorist act. How we choose to respond as individuals is clearly a personal decision. We can give blood, donate more to our favorite charities, or simply find other ways to show that America is strong because we respond to senseless hate with overwhelming love and kindness.

Once again, terrorism is filling newscasts worldwide.

Next, I recommend you check out some of the work my colleague Dr. Jeff Cantor is doing right here in Money and Markets. Cantor is one of the country’s leading authorities on personal and international security, including how to prepare and respond to active shooters, domestic terrorism, and kidnappers who demand ransom. He’s also an expert in travel security as well as personal defense, including close-quarters combat and fighting with tactical, edged weapons.

As a financial analyst and writer, it’s also my job to put acts like these into a broader context — particularly with regards to what it means for markets. I said earlier this year that Europe’s economy could suffer in the wake of recent terrorist attacks there, and that those attacks were just in a list of reasons to avoid overcommitting capital to the region.

I actually think the economic impact will be more muted here. Tragic “lone wolf” attacks, like the one in Orlando, can happen at any time. They may have a short-term impact on tourism.

But the U.S. is still perceived as a safer destination, in part because we are much farther removed geographically from some of the world’s worst hotspots. It also doesn’t seem that terrorist groups like ISIS have the same kind of on-the-ground personnel and support networks here that they have in the Middle East or Europe.

If anything, this kind of news will likely reinforce the resolve of whichever presidential candidate wins this fall to boost defense spending. The goal? Take the fight to our enemies on their home turf, so they can’t hit us as hard in our own back yard.

“The U.S. is still perceived as a safer destination, in part because we are much farther removed geographically from some of the world’s worst hotspots.”

As a result, I wouldn’t be surprised if defense stocks continue to outperform in today’s uncertain and dangerous world. I first wrote about that trend last April.

Anyway, those are some of my thoughts at this difficult time. I’d like to hear yours as well. What are you doing to keep you and your family safe in this uncertain world? What impacts do you think this attack, and other recent terrorist strikes in Europe, will have over the longer-term? Can we take steps as a country – or as individual Americans — to increase our nation’s safety? Share your comments in the discussion section below.

Our Readers Speak

Meanwhile, many of you weighed in on NIRP, ZIRP and the worldwide yield-chasing frenzy over the weekend.

Reader Donald L. highlighted the distortions that ultra-low/negative interest rates are causing, saying: “Central banks, in collusion with the governments of the countries in which they are located, have so distorted normal market operations that yields bear little or no relation to risk or return. They have forcibly turned the laws of economics upside down and there will be a price to be paid. Unfortunately, it is we, the public, who will pay the price.”

Reader Chuck B. said low rates were a symptom of a weak economic outlook, posing a serious challenge for policymakers. His comments: “This week, we will have the Fed’s decision on rates for June. Since Janet Yellen has been talking up a rate hike, any failure to do one might be taken as a rather negative sign. It would indicate the economy is not so good after all, which we all know is actually true.

“A poor June hiring figure, and failure to hike in July, would really confirm that. The May drop in new hires could be a sign that new college grads are not getting early bids from employers, and may need to fall back on their moms and/or dads as their tuition loans begin to come due.”

Reader John H. said he thinks low rates will have a positive influence on growth: “Bill Gross and others who claim it’s ‘bad for the economy’ are not correct. Low costs of debt (or borrowing) are contributing to reduce the cost of capital bar needed for investment projects to go forward. The cheaper it is to finance growth, the more growth there will be.

“It is a tremendous boom to the borrowers of money who invest in growth to have money made available to them so inexpensively. And when other conditions are also met (aka – profitably of projects in the light of other circumstances) cheap borrowing is the ideal environment for a strong economy.”

But Reader Billy was much more pessimistic on the outlook: “We are seeing in the bond market yet another indication that a major change in direction is coming for the capital markets, especially equities. It will most likely be worse than the 2007-2009 Great Recession, which was triggered by the U.S. subprime mortgage and real estate crisis.

“This crisis has so many powerful, global triggers: China stock/real estate, sovereign and junk debt, derivatives, margin debt, deflation, negative interest rates and let’s not forget the major canary – that being demographics.”

The solution, at least according to Reader Gordon? Buy gold! His comments:

“With all the negative yields in play and growing, I think it is only a matter of time till pension and insurance funds take a serious look at gold to protect their clients. Negative returns do nothing to cover their clients’ projected retirement numbers/needs and I think negative interest rates are here to stay.”

Thanks for sharing your thoughts on this very important topic. As I said on Friday, NIRP/ZIRP is introducing all kinds of distortions into the markets and the global economy – and I don’t see how this ends well. So buying gold, investing in “Safe Yielders,” adding downside stock market hedges, and avoiding high-risk junk bonds all seem like sound strategies to me.

Any other thoughts you want to share? Then be sure to do so in the comment section below.

Other Developments of the Day

Will U.K. voters decide to exit the European Union? A poll on Friday showed a much higher likelihood of that happening, helping to tank the stock market and British pound. But other polls suggest the “Remain” and “Leave” camps are running neck and neck. The referendum will take place on June 23.

Troubled blood-testing firm Theranos has lost its largest partner, Walgreens Boots Alliance (WBA). The drugstore chain terminated its deal with Theranos amid concerns about the company’s testing protocols and underlying technology. Regulators are considering sanctioning Theranos for various lab failures.

Microsoft (MSFT) launched a $26.2 billion takeover for the employment-social media company LinkedIn (LNKD). The offer of $196-per-share represented a hefty premium to LinkedIn’s close of around $131 on Friday, and it’s one of Microsoft’s biggest deals ever.

So what do you think about the British vote: Will the U.K. pull out of the EU? Should it? How about the latest struggles at Theranos … will the once high-flying tech “unicorn” be able to dig itself out of this regulatory hole? Any thoughts on Microsoft’s M&A gambit? Hit up the comment section and share your thoughts.

Until next time,

Mike Larson

Recommended Articles by Mike Larson:

Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.

{45 comments }

RyanMonday, June 13, 2016 at 5:08 pm

Wounded Knee massacre in South Dakota was the worse mass shooting….US Government kill hundreds of Sioux Indians after they disarmed them “for their safety”.

stevenMonday, June 13, 2016 at 5:08 pm

so instead of being a professional who is “LinkedIn” to other colleagues and peers, I will now become a “Micro-Softie.” Sniff!

peterMonday, June 13, 2016 at 5:15 pm

If the British value freedom over bureaucratic serfdom, they will vote against the elites and for Brexit.

John TracyMonday, June 13, 2016 at 5:19 pm

A white supremacist walks into a black church in the south and guns people down it’s a hate crime. A homophobe walks into a gay night club and guns people down and because he’s of middle eastern ancestry it’s a “terrorist” attack. Shouldn’t the religious right share some of the blame for all the homophobic hate they’ve spread around over the years?

F151Tuesday, June 14, 2016 at 11:55 am

It’s all just murder. Enough of the psycho babble.

CarolynSaturday, June 18, 2016 at 9:18 pm

No

JacquesMonday, June 13, 2016 at 5:20 pm

The USA still live with the mentality of the FarWest of the 19th century.
Is it the NRA who run the USA government !!!
Sincerely Yours
Jacques

Dr.Donnie SmithTuesday, June 14, 2016 at 8:56 am

If the NRA ran the federal government we wouldn’t be in debt right now…!

F151Tuesday, June 14, 2016 at 11:55 am

And who runs France? ISIS?

Frank SchwartzMonday, June 13, 2016 at 5:26 pm

Mike,
I hope the UK does leave the EU. The fear-mongering and paranoia the remain (Bremain) camp is peddling (a.k.a. “project fear”) is in the interest only of EU bureaucrats and the special interest in collusion with them.

Here is a link to an excellent article with embedded link to a movie that makes a coherent argument for a Brexit.http://www.acting-man.com/?p=45236
Warning: it is a bit long, a bit erudite, and loaded with facts and charts; but well worth the time to read and understand. Open minds should want to know both sides.

F151Monday, June 13, 2016 at 5:35 pm

These types of attacks will only increase in the future. Our president has a policy of open borders for any and all. And THAT just invites the terrorists to immigrate here to do their dastardly deeds. And if they don’t do it….their children will. Not all….but enough to wreak havoc on thousands of American families. It is high time we said to would be would be immigrants…exactly WHAT do you bring to US?? Are you well educated? Why do we need YOU? Can we trust YOU? This is not 1800 or even 1900. Times have changed. And not for the better. We need to be VERY SELECTIVE….other countries are. Think Japan. Think Mexico. Think Australia. Think New Zealand….etc, etc.

Harry BrettMonday, June 13, 2016 at 5:55 pm

Very saddened and extend our sympathies when hearing of another home grown shooting outrage in Orlando, with America as we are, so threatened and attacked by this religious based aggression here and abroad. Always read and enjoy you and Martins many insights on the financial and social tempo of the US but very surprised that no mention of surely the main homeland security topic, ie the extraordinary easy access to guns in the US.
Understand that the majority of America, regardless of political affinity, wish to have proper sensible gun control, particularly assault rifles and the favourite of assassins, the AR-15, but regularly Congress overwhelmingly blocks this legislation after much powerful financial lobbying. Surely they must be aware that the US murder rate is nearly 25 times higher than in the rest of the developed world.
Meanwhile over here it becomes clearer and clearer that European gun control is very poor, made so much easier for the terrorist by the immigration crisis and as you pointed out, an on the ground support network that has been allowed to grow by a slow, unco-ordinated response.

Hampshire, England

Dr.Donnie SmithTuesday, June 14, 2016 at 9:00 am

So tell us how well gun control is working in Europe… It’s open season on anyone and everyone for the terrorists…!

RichardMonday, June 13, 2016 at 5:58 pm

Europe is probably the largest PONZI scheme the world has seen, they never publish accounts, and they keep admitting new countries to the club, The threats they have made to the UK is pathetic, A lot of people in the UK are worried about immigration levels we could be forced to take in if we stay in the EU, if we leave which I hope we do the pound will head south for a short time and then the European Union will start to self destruct, The Brits have every reason to distrust the EU, The EU is in a financial self destruct mode so why would the UK want to be a part of this corrupt wonderland, Deutche Bank is so deep in the mire due to derivative exposure, it only has to go a few more cents and the lift is going to pick up speed to the ground floor if it closes below 1300 in the next few days keep an eye on them as they could be the bank that starts the bursting of the Euro Ponzi scheme. Just another 60 cents to go and then we should see some sparks fly as I am sure they will have trades that will start to go against them if the share price makes a new low since 2009.
I could go on for 100 pages of why we should leave the EU,
But for now condolences to the Family’s of the terrible events in Florida

Thomas SchechterMonday, June 13, 2016 at 5:59 pm

There was also San Bernandino, ,Aurora, etc. ISIS would like to claim resp;onsibility to look good, even if they weren’t responsible. The target was not what someone would call a terrorist target:a gay bar in Orlando. Neither the target itself or the city would make sense for a terrorist attack. Although the suspect said he wanted to join ISIS, that is the only evidence to verify it; he never went overseas. He was on a watch list, but Republicans wouldn’t stop someone on a watch list from purchasing a gun. Hunters do not use the gun he used; it a gun that should only be used by the military, but NRA wants more bloodshed by allowing anyone to be it,

MikeMonday, June 13, 2016 at 6:10 pm

Low rates do not help the economy for the average person . It creates asset bubbles .housing is in a bubble because of suppresses interest rates. Look in the mirror ..housing prices are going up because it effects your payment so you can afford more. Causing housing prices to go up.. More than a lack of inventory..

Housing will implode when rates normalize. The people who bought in the last 4 years will be left holding the bag.. The lenders will be stuck with homes again.. Causing housing prices to go down overall. Foreclosure a plenty,

No free lunch .. Someone will pay. But in housing the lender pays.. Home owners will pay..
You the American Citizen will pay to bail out the lenders.

The Fed knows this. They are boxed in. Should start normalize rates before there is no help..

The Fed will blame it on loose lending practices like before.

When they should look in the mirror and see the real reason.

David O. EhlersMonday, June 13, 2016 at 6:11 pm

Mike

Your educational and professional background speak for itself. Bankrate.com, and an unaffiliated source, has long been known as a primary analytical source for factors influencing interest rates – the primary determinate of ALL investment considerations and the most difficult to foresee!

Why, as Bill Gross now states, the investor is faced with 500 year lows in rates?

This is not a matter of “renting” money as we learned in Econ 101. In my opinion, it is a matter of deflationary outlook and storing one’s investment funds to make certain of return of capital. “Talking my book” – certainly – no stocks, no bonds, no preferred stocks – just US Treasury guaranteed obligations!

JoeMonday, June 13, 2016 at 6:11 pm

Low interest rates don’t mean much if they are seen in combination with high debt.
Federal debt as well as cosumer debt are at an all time high, it does not mean much if I get 0% interest on a purchase but Imdon’t qualify for credit.
And with all the cheap money and low and no interest around , it’s just a matter of time until people are maxed out. And we are geing there.

If low interest rates would work in the long term, why hasn’t it worked in Japan or Europe?

Low interest rates work as a short term measure to get people to buy, but long term it kills peoples credit limit and the economy.

johnMonday, June 13, 2016 at 6:18 pm

Uk Brixet hard to call. My opinion is that the stay voters will have a slight majority.
If UK leaves lots of unknowns regarding the EU future?
John

ThomasMonday, June 13, 2016 at 6:55 pm

The Brexit saga is developing into a most interesting phase. Regardless the outcome, I think Cameron is in trouble! Expect an angry voters back-blow, IN or OUT, as about 50% of voters will be on the losing side! I see a leadership revolt in the Tory house coming. The Blue-on-Blue attacks derailed lately and the damage is done. The actual question that matters most is not what will happen in the UK, (they have been around as a Nation since 1266), the question is how will the European Union survive without the UK in case of an exit!! (Let alone the shaky Euro as a currency). TTIP will be history even before it began!

ForrestMonday, June 13, 2016 at 7:41 pm

Its just like the media to make these killers think theyve really done something and to put it like ” The Most killed in a Mass Killing in US “, it only makes killers think they have to kill more than the killer thats killed the most, Thats what your doing, making killers think they have to kill kill kill more. One day its going to bite some of you all in the media and some of your own children could be mixed up in one of the future killing competition that you have created, it happened to the general of the Israeli Army back in around 1967 when he falsely accused the Arabs of attacking to give them the reason they needed to attack the Arabs and in turn suicide bombers started up and one killed the Generals grand daughter, that is in the records as fact and its been proved what the General did and it bit him real good, poor little grand daughter.
For one thing what you all have written isnt true anyway, theres been worse mass killings many times larger than these your referring back when they were killing indians by single men. JUST STOP MAKING IT LIKE A COMPETITION !

Chuck BurtonMonday, June 13, 2016 at 8:07 pm

Will the Orlando attacks have influence in the Brexit vote? Possibly. Britain has already suffered attacks, and Britons might see the possibility of more, if obligated to allow more refugees in. If voters approve, it still must pass Parliament, and I imagine Parliament is as infested by elitists, as Congress is, but they are also politicians, and know which side of the bread gets the votes. If the vote is at all lopsided, in favor of Brexit, Britain will be out of the EU pretty quickly, but if it is close, it might go either way. That could energize the Scottish nationalists in their desire to break free, though.

Chuck BurtonMonday, June 13, 2016 at 8:13 pm

By the way, concerning Orlando, I don’t often agree with Hillary, but her question asto why someone on the FBI’s watch list is allowed to freely buy firearms, seems valid. Mateen should have been turned down. Of course, he could just go to the street market, I suppose. Maybe pay more for an AR-15.

Chuck BurtonMonday, June 13, 2016 at 8:53 pm

By the way, I read elsewhere, that Horseman Global, a nearly $Billion fund that has averaged over 17% return since 2011, by being net short, is now about 103% net short. (It’s short positions are greater than the value of the fund). What do they know, that causes them to take that position, and with that record, maybe we should pay attention

VinmanMonday, June 13, 2016 at 9:23 pm

Trump was right again . Had the government listened and vetted people emigrating into this country just maybe this could have been avoided . It is unbelievable to me with all thats going on in Europe that our government would not act more responsibly when they let people emigrate into our country .

Dr.Donnie SmithTuesday, June 14, 2016 at 9:10 am

The democrats that are running 95% of the federal government are looking only for voters… Race or criminal intent are not going to interfere with their goals!

F151Tuesday, June 14, 2016 at 11:59 am

Right on, Vin.

PerryTuesday, June 14, 2016 at 12:06 pm

Vinman, the killer was a US citizen, born in New York

VinmanTuesday, June 14, 2016 at 11:27 pm

Perry

The killer may have been born here but those who influenced him to eventually kill so many people most likely were born or raised by people who immigrated here .

BullWednesday, June 15, 2016 at 10:03 am

Naw , he was just a sick nut running loose . This country is loaded with them, and having access to so much firepower ,and ammo is very lethal. No one needs a gun that kills 700 people a minute to defend themselfs . We have to get thise things off the street.

LarsMonday, June 13, 2016 at 9:56 pm

“Terror Hits Home in Worst U.S. Mass Shooting on Record” nice headline but totally wrong. The 50 killed and 53 wounded in Orlando at last count pales in comparison to the 150 men, women, and children that were killed and 51 more wounded (4 men and 47 women and children, some of whom died later); during the December 29, 1890 mass shooting/massacre at Wounded Knee, SD. Some estimates placed the number of dead at 300.

F151Tuesday, June 14, 2016 at 12:01 pm

Or Waco.

joseMonday, June 13, 2016 at 9:59 pm

Something is fishy here the FBI had him under radar for a l9ng time and let him go I believe I heard the same thing from 9/11 that they knew that the attack would take place when it did and no one did anything maybe they are using this as a way to inflict gun control on the citizens. Who knows

charlesMonday, June 13, 2016 at 10:05 pm

negative interest rates tell me that savings have no value. Our economy is all about cash flow and the greater the velocity thereof, the better. The central banks around the world are hell bent of creating hyper inflation to insure an increase in the velocity. When they finally accomplish their goal, you better be holding on to some ‘MONEY’ instead of just your local currency.

jimMonday, June 13, 2016 at 11:30 pm

euro will go; iam investing very small in low mining co.

GordonTuesday, June 14, 2016 at 1:51 am

John H
Low rates are helping companies expand? really. Mergers, buybacks, dividend increases, CEO pay increases are more like it. If low rates would help companies expand why is the global economy in such a mess.

Sylvia BaileyTuesday, June 14, 2016 at 1:51 am

I don’t like the fact that people are standing on every corner with automatic guns and military fatigue on.. That is not freedom! That is intimidation. If you can’t be free then you cannot take the chances that you have in life. We all must die..Maybe the FBI and CIA should be a little better giving weapons to people they have interviewed…I am tired of military and police intimidation..Just want a quiet life and take my chances if I have to.

GordonTuesday, June 14, 2016 at 1:56 am

Just looking at all the red in your Stock Indexes. Finally markets are starting to reflect some of the truth of the global economies. We may however just hit a glass ceiling. If the fairy dust train and the dime a dozen analysts continue and increase “positive” spouts we may indeed break through this glass ceiling and head into unknown territory fueled by greed only forget earnings expansion and the real market movers of yesteryear. Watching investors driving up markets in the past couple weeks reminds me of lemmings rushing over a cliff. Look out below!!

GordonTuesday, June 14, 2016 at 1:58 am

Billy
I think you have figured it out.

GordonTuesday, June 14, 2016 at 2:07 am

Yes Microsoft will be one of the last big businesses left standing. They will be one of the rulers of future world. No one will dare disagree with them they have a whole bank of lawyers to silence everybody. This is how in the future a few big businesses left will manage the shrinking middle class through threats of lawsuits regardless of what/who is right and wrong. They will use many of the same tactics that “The Donald” uses today to chisel people delay payments etc. I was recently the victim of a large international company that just decided to change platforms no consultation, warning, tutorial just here it is live with it. Complaining got me nowhere. They came off sounding compassionate but really were not. Their attitude was switch or leave game over.

JosephusTuesday, June 14, 2016 at 2:29 am

The UK is very worried of the negative interest rates world in banking, especially EU Central Bank attitude. The Bank of England caters for millions of British Pound holders all over the world. These bonds are sacred to these foriegn holders. This is the great question that British politicians have to ask themselves: What happens if we stay in the EU and we have to establish negative rates ? The answer will be: Financial Armageddon. My way of thinking is this: Follow the money. The British Pound must become detached from any other currency. It has always been like that. If there is no Brexit, England will lose its power as top banking country. This is what the US wants. New York has been after the jewel since WW2. If New York gets the jewel, you can say goodbye to GOLD standard. Say hello to communism Obama style.

JackTuesday, June 14, 2016 at 7:20 am

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I don’t get or expect any favors for this, just honest recommendations to you.
Martin Weiss is the most honest, and dependable, person I deal with.
His company is the best I know of. I have always depended on their
recommendations, and it paid off. Just want my friends to know my
experiences…………………………….Jack Pitchford

BullTuesday, June 14, 2016 at 9:33 am

Probably the Brits ought to leave the EU. They were setup before WW2 ,and the most powerful country ever ,but by being loyal to the mainland they lost it all.. Especially how lousy Spain, Portugal, Greece run their country financially.

frederickTuesday, June 14, 2016 at 9:17 pm

only free men and women can own guns. the rest are destined to become government clones.

FlashThursday, June 16, 2016 at 11:02 pm

Remember 1890 massacre of Indians in South Dakota.
Remember 1917 massacre of Blacks in East St. Louis.
Remember 1921 Massacre of Blacks in Tulsa, Okla.
Remember 1923 Massacre of Blacks in Rosewood, Fla.
How quickly our violent country has forgotten the terrible killings and raping of Blacks and Indians.